New Jobless Claims Make Unexpected Jump

Latest Unemployment Figures Are Worst In 26 Years; Consumer Spending Down For Fifth Straight Month

(CBS/AP)  New claims for unemployment benefits rose more than expected last week, the government said Wednesday, as layoffs spread throughout the economy, more evidence the labor market is weakening as the recession deepens.

The Labor Department reported that initial requests for jobless benefits rose to a seasonally adjusted 586,000 in the week ending Dec. 20, from an upwardly revised figure of 556,000 the previous week. That's much more than the 560,000 economists had expected.

That's also the highest level of claims since November 1982, though the work force has grown by about half since then.

A Labor Department analyst said auto-related layoffs were a factor in the increase.

Meanwhile, the bad economic news sent oil prices tumbling Wednesday, with a barrel of crude briefly fetching less than $37 in thin Christmas Eve trading.

The four-week average of initial unemployment claims, which smooths out fluctuations, increased to 558,000. That's the highest since December 1982, when the economy was emerging from a steep recession.

There was some improvement in the number of Americans continuing to seek unemployment benefits, which dropped slightly to 4.37 million from 4.39 million the previous week. Wall Street economists had expected the number to increase to 4.4 million.

But some economists think that the recent economic data, which included reports of shrinking home sales and productivity Tuesday, will continue to pour in without some meaningful economic stimulus.

"Until we see an economic stimulus plan that gives us confidence, it's gonna be hard to see our way out of the current downturn," economist Mary Kay Plantes told CBS News Radio.

Economists consider jobless claims a timely, if volatile, indicator of the health of the labor markets and broader economy. A year ago, initial claims stood at 353,000.

The elevated level of new jobless applications is just one of several signs that the labor market has deteriorated rapidly in recent months.

The Labor Department said earlier this month that employers cut a net total of 533,000 jobs in November, sending the unemployment rate to 6.7 percent, the highest in 15 years.

Mass layoffs are taking place in a wide range of industries. Industrial conglomerate Textron Inc. on Tuesday said it has cut 2,200 jobs, while technology services provider Unisys Corp. said Monday it will eliminate 1,300 jobs. Sovereign Bancorp Inc.'s bank unit said last week it is laying off 1,000 employees.

Meanwhile, the Commerce Department reported Wednesday that consumer spending fell for a fifth straight month in November, the longest weak stretch in a half-century, while incomes declined under the weight of massive job layoffs.

Spending fell 0.6 percent last month, slightly smaller than the 0.7 percent drop that economists had expected.

Americans' incomes fell by a worse-than-expected 0.2 percent. It was the first decline since July and reflected in part the fact that more than a half-million jobs were cut in November as the recession deepened.

The 0.6 percent drop in consumer spending followed an even larger 1 percent fall in October. However, the steep plunge in gasoline prices, which is actually good news for consumers, made the declines look worse.

Excluding price changes, consumer spending would have dropped 0.5 percent in October and actually risen by 0.6 percent in November. The November increase excluding inflation was the best showing in more than three years.

Still, economists think the overall trend for consumer spending is down, given the problems facing the economy including the longest recession in a quarter century, a severe financial crisis that has cut off access to credit for millions of borrowers and a massive wave of job layoffs.

All of those troubles have left retailers braced for what could be their worst holiday shopping season in decades.

Economists don't think the hard times will end any time soon. The government reported Thursday that the overall economy, as measured by gross domestic product, was contracting at an annual rate of 0.5 percent in the July-September quarter and analysts believe the contraction will accelerated in the current quarter. Some are forecasting that GDP will plunge at an annual rate of 6 percent, which would be the worst showing in 26 years.

Many analysts say GDP will also fall in the first and second quarters next year before beginning a modest rebound in the summer. If that forecast turns out to be accurate, it would make the current recession, which began in December 2007, the longest in the post World War II period.

The economic weakness is helping to keep inflation under control. A price gauge tied to consumer spending fell by a record 1.1 percent in November, the second monthly decline. Excluding the cost of energy and food, the price index was unchanged last month.

Over the past 12 months, consumer prices are up 1.4 percent, the smallest 12-month change since August 2002.

[oleander8]

"...highest level of unemployment claims since November 1982." "...GDP will plunge at an annual rate of 6 percent, which would be the worst showing in 26 years."

These numbers go back to the Reagan years. Somebody remind me why he is considered a ''great'' president? In 1982 home mortgage rates were 18% --- never again tell me conservative Republicans are fiscally responsible. I''ll take Democrat tax-and-spend over Republican borrow-and-spend any day of the week.

[docpeter1953]

These numbers go back to the Reagan years. Somebody remind me why he is considered a ''''great'''' president? In 1982 home mortgage rates were 18% --- never again tell me conservative Republicans are fiscally responsible. I''''ll take Democrat tax-and-spend over Republican borrow-and-spend any day of the week.

Posted by oleander8 at 10:40 AM : Dec 24, 2008
_________________________

Because he slept through most of his riegn?

If he would have been awake he could/would have done a lot more damage to the economy?

Before you critize me, I am just asking!

[torva-2009]

This year''s holiday message from the GOP...s.crew you America!

There needs to be a new conservative party, without the religous bigotry and greed that is the surviving remnant of today''s Republican Party!

[debinok1]

30,000 jobs lost in a week, and its going to get worse, what Bush did to this economy is a crime against the people, now when is congress going to hold him accountable?

[gowens1]

I can just see Bush and Cheney kicking back in the white House laughing at how they hosed the American citizens and got away with it for eight long years. Merry f.ing Christmas America.......

[dsjones26]

Thank good we elected Obama. Remmeber when McCain said our economy was basically strong. The GOP drove this country into the ground and the still are blaming Clinton & the DEMS for all the ills in the world. The Goose-Steeping, Kool-Aid Drinking, GOP Brown-Nose Lickers Leaders from Tom "Bug Killer" Dashal to George "What the F***K" Bush all need to be jailed for Treason.

New Jobless Claims Make Unexpected Jump

DUH!

[bjcone8559]

These numbers go back to the Reagan years. Somebody remind me why he is considered a ''''great'''' president? In 1982 home mortgage rates were 18% --- never again tell me conservative Republicans are fiscally responsible. I''''ll take Democrat tax-and-spend over Republican borrow-and-spend any day of the week.


--------------------------------------------------------------------------------

Posted by oleander8

Reasgan took the unemployment rate from 6.0% to 10+% in hiss first year.


1980-01-01 6.3
1980-02-01 6.3
1980-03-01 6.3
1980-04-01 6.9
1980-05-01 7.5
1980-06-01 7.6
1980-07-01 7.8
1980-08-01 7.7
1980-09-01 7.5
1980-10-01 7.5
1980-11-01 7.5
1980-12-01 7.2
1981-01-01 7.5
1981-02-01 7.4
1981-03-01 7.4
1981-04-01 7.2
1981-05-01 7.5
1981-06-01 7.5
1981-07-01 7.2
1981-08-01 7.4
1981-09-01 7.6
1981-10-01 7.9
1981-11-01 8.3
1981-12-01 8.5
1982-01-01 8.6
1982-02-01 8.9
1982-03-01 9.0
1982-04-01 9.3
1982-05-01 9.4
1982-06-01 9.6
1982-07-01 9.8
1982-08-01 9.8
1982-09-01 10.1
1982-10-01 10.4
1982-11-01 10.8

[tawpdawg111]

We are shedding jobs at an alarming rate of 5 or 6 hundred thousand a month now. How can we POSSIBLY have an unemployment rate within 1 percent of what it was in 1995?

[u-r-right]

Why people voted for a old, two-bit actor such as Ron Reagan, I''ll never understand. What result do you expect from a old cowboy star.

[wl7bzh]

These numbers go back to the Reagan years. Somebody remind me why he is considered a ''''great'''' president? In 1982 home mortgage rates were 18% --- never again tell me conservative Republicans are fiscally responsible. I''''ll take Democrat tax-and-spend over Republican borrow-and-spend any day of the week.

Posted by oleander8 at 10:40 AM : Dec 24, 2008

Granpa Reagan sold the family farm economically to give us one last barn dance.

Lyndon B. Johnson subsidized poverty with his Great Society policy which made it more reasonable not to work for minimum wage and go on welfare instead.

But the big one was Tricky *** Nixon taking us off the gold standard essentially making the dollar worthless but for the faith of the American public.

The problem over the years has been what amounts to fiscal prostitution-the pimps in the White House have been working with hookerz in the legislative branch to give the "Johns" Q. Public what they want.

Our leaders, in order to stay in office, wound up in the position of being unable to say no-to practically anybody.

[cariboubarbi]

Don''t worry folks!

All that money Bush funneled to the super-rich is going to "trickle down" to you sooner or later.


If, when the trickle finally reaches you, it looks and smells like urine............that''s because it is.

[jntlw-2009]

The difference between the unemployment figures of today and those of November 1982 is we were coming out of a bad recession then, but now we are just entering a bad recession. Things will be much worse than that of 1982 I''m afraid. We need to nail butts in the Bush administration, and Congress and the Senate need to be replaced completely. They are too beholding to big business and slimballs on Wall street. Get rid of all lobbyist!!!! Effective Change must happen or we will no longer be a country at all!

[debinok1]

Well I think GWB can now stand in front of his MIssion Accomplished banner and actually be right this time. He accomplished his mission to destroy america, the economy and the american people, and he did it in just 8 short years. I bet he and his skull and bones buddies are having a good laugh over this one. They got richer while they destroyed the working class.

[xxunknown]

im dancing america is dying all these suferring joblosess hunger and other punishment they r getting from God for killing innocent people in other countries and several other sins they did and continue doing it making america worse.anyways glad this is happening in america i could not get happier then this.now where are those white blonde tall educated peopel who always ays we r number one we r superior lmao they cant even get one time food yesssssss.


--------------------------------------------------------------------------------

Posted by fear_crysis
-----------------------------
Most of us peon Americans had nothing to do with the bloodbath caused by the government in Iraq and Afghanistan. Judging an entire nation of people just exposes what an idiot you are.

[debinok1]

Morning Hacker

[jsklinemn]

I get a kick out of all the complaints on here blaming this on the GW Bush. Good luck. It just shows some of the low intellect, and lack of education in this country. No wonder we''re falling behind the rest of the world. As for unemployment, it''s likely to get worse yet because of the criminals disguised as bankers and the like who took the money and put it in places the IRS can''t touch. Even if housing goes up a tad, the boom is over. It''s time for the dollar value to reset to that of a dollar, and the valuation of goods and services to become more realistic now. I bet most everyone in this country will be learning a new career just so you can work. The last time I was unemployed in 2002, I exhausted my benefits and wound up living on low wage "temp" jobs. All because the jobs I was qualified for were being filled by H1B''s at 1/5th my earnings. Yea; it''s time for the shill markets to disappear and the economy become something based on *real* trade once again.

[troutfisher4]

Merry Christmas from the White House to you!

GW Bush

[irmcvet971]

Posted by jsklinemn at 11:34 AM : Dec 24, 2008

Man I don''t know why you stopped in the 6th grade... you could have done so much if you''d have gone on to High School! Now when Sir Lies-A-Lot and the De-regulate EVERYTHING Fascist took over we had a Balanced Budget and a Surplus. The national Debt was set to be paid off in 5 years and UNEMPLOYMENT was at a record low. NOW look at us! Even a 6th grade drop out should be able to see and understand FAILURE when they see it!!

[debinok1]

But wait! They have a solution! Combine Mexico, Canada and the United States into one economic "powerhouse" and everything will be "better". Get rid of the worthless dollar and replace it with the Amero. Replace the Constitution with...whatever...and turn the whole thing over to the new, Emperor of the Americas or Lord of the Western Hemisphere. Don''''t plan on taking your guns into the North American Federation though,

Posted by BRdeckard
******************
That would be 1 continent down and 6 to go.

[troutfisher4]

Now take that unemployment check and go shopping!

[dave_p5]

"Well I think GWB can now stand in front of his MIssion Accomplished banner and actually be right this time. He accomplished his mission to destroy america, the economy and the american people, and he did it in just 8 short years. I bet he and his skull and bones buddies are having a good laugh over this one. They got richer while they destroyed the working class." - DebinOK1

Amen. Well, look at the bright side, at least we don''t have Vice President Palin. The dumb cycle has been broken.

[spinproof]

I get a kick out of all the complaints on here blaming this on the GW Bush. Good luck. It just shows some of the low intellect, and lack of education in this country. No wonder we''''re falling behind the rest of the world. As for unemployment, it''''s likely to get worse yet because of the criminals disguised as bankers and the like who took the money and put it in places the IRS can''''t touch. Even if housing goes up a tad, the boom is over. It''''s time for the dollar value to reset to that of a dollar, and the valuation of goods and services to become more realistic now. I bet most everyone in this country will be learning a new career just so you can work. The last time I was unemployed in 2002, I exhausted my benefits and wound up living on low wage "temp" jobs. All because the jobs I was qualified for were being filled by H1B''''s at 1/5th my earnings. Yea; it''''s time for the shill markets to disappear and the economy become something based on *real* trade once again.

Posted by jsklinemn at 11:34 AM : Dec 24, 2008

Your comments are only half true, when things are going well GW Bush takes the credit so when things are not going well the Public obviously expects GW Bush to take the blame, GW Bush can''t have it one way!

[debinok1]

Five. Europe is pretty much there already.

Posted by BRdeckard
***************
I wondered if anyone would catch on to that comment.

[rudy6543]

It''s time for the dollar value to reset to that of a dollar, and the valuation of goods and services to become more realistic now. Posted by jsklinemn at 11:34 AM

Since you don''t think that Bush should be blamed, then just what do think deficit spending (done by Bush for his created war in Iraq) does to the dollar?

[rudy6543]

Merry Christmas from the White House to you!

GW Bush

Posted by troutfisher4 at 11:37 AM

It''s like someone said elsewhere, right now, we are like a ship with no captain, because this idiot Bush isn''t going to do one thing about it. What a failure, and a failure at everything he does.

[missingamerica]

"New claims for unemployment benefits rose more than expected last week, the government said Wednesday"

What is up with that, CBS? Why do you keep parroting their words, when the evidence screams this Administration has been playing the American people for eight solid years? Say it like it is:

"The Administration was unable to stay ''''on message'''' due to the weight of publicly-available numbers and admitted that initial claims for unemployment had jumped again."

[debinok1]

This mess is hitting world wide and it will cause each continent to unify to survive, thats when it gets worse.

[whitemale08]

The Bush/Hannity/Limbaugh-Depression will just continue to get worse.

Now that the looting is in full swing, we are on the edge of the cliff of a total economic black hole.

Here''s an explanation from Larouche:

Lyndon LaRouche today forcefully warned that the entire global financial system is "now ripe for a total blowout.'''' LaRouche declared, "It could come at any moment now--tomorrow morning, Jan. 2, anytime. The world is as good as dead, in terms of the survival of the nation-state system, unless this situation is corrected immediately, through the steps that I have repeatedly outlined.''''

[debinok1]

The steps it would take to correct the situation there, but you wont find anyone in government willing to take them.

[missingamerica]

is to eliminate at least 20% of all government jobs, and cut the US military welfare budget by 50%. This alone would lead to a positive government surplus, then taxes could be reduced to all across the board.

Posted by ConDumbistan at 11:53 AM : Dec 24, 2008

So to fix the broken job market, we dump a half-million more people into the unemployment lines after eliminating their jobs as well as jobs all across the defense industry?

Interesting approach.

[missingamerica]

is to eliminate at least 20% of all government jobs, and cut the US military welfare budget by 50%. This alone would lead to a positive government surplus, then taxes could be reduced to all across the board.

Posted by ConDumbistan at 11:53 AM : Dec 24, 2008

So to fix the broken job market, we dump a half-million more people into the unemployment lines after eliminating their jobs as well as jobs all across the defense industry?

Interesting approach.

[debinok1]

It would require putting a stop to ALL grants except education, removing all government funding from NASA, pulling out of Iraq, reducing the pay for the government from the top down, including all ex presidents, removing all pork spending, but you wont find enough government cooperation to get it done.

[zzy-izzy]

And Reagan was such a good Presedent what makes a good Republican Presedent is one that puts the shaft to every working person in the country and gives to the rich all the Republicans want to do is roll your pay back until it takes you 10yrs to get back to where you were when they took office they can not get to hell fast enough for me.

[irmcvet971]

So to fix the broken job market, we dump a half-million more people into the unemployment lines after eliminating their jobs as well as jobs all across the defense industry?

Interesting approach.

Posted by ibsteve2u at 11:57 AM : Dec 24, 2008


LOL Kinda like pouring Gasoline on a fire huh?? LOL When WE the PEOPLE understand that it all starts with that guy who goes to work everyday and stop the rush to the bottom, nothing is going to change. We allowed the Snake Oil Sales Men to sell us "Trickle Down" and the wealth IS NOT in the hands of those who drive the economy.

[whitemale08]

Globalization has been discredited and our Keynesian designed ''monetary-system'' is DEAD!

Which means not even 100s of billions in new job creations will work because the entire ''monetary-system'' is DEAD!

It''s the same thing a throwing a snowball at a freight-train. When money has no value who cares how much money you print?

We must put the entire ''monetary-system into receivership so we can re-organize it under bankruptcy and cancel over a quadrillion in derivatives.

This of course will require ''treaty-agreements'' within the frame-work of a new Bretton Woods.

That way all nation-states can ''utter'' their own ''development-credit'' that will restore adequate food supplies, energy, salible water and infrastructure.

That will bring about ''fully employ'' peoples around the world and we will once and for all and we can throw away the old bankrupt Anglo-American Wall Street City of London financial empire into the ash-heaps of history!

[irmcvet971]

It would require putting a stop to ALL grants except education, removing all government funding from NASA, pulling out of Iraq, reducing the pay for the government from the top down, including all ex presidents, removing all pork spending, but you wont find enough government cooperation to get it done.

Posted by DebinOK1 at 12:03 PM : Dec 24, 2008

Oh come on! Haven''t we tried this garbage long enough? Time to understand ONE thing here. Those people who bought the LIE that good jobs would be created by "Free Trade" were the backbone of this nation. WE fed them to the wolves and now it''s come home. When WE allowed our Government to put them in competition with FORCED Labor in China, we were cutting our OWN throats!!

[zzy-izzy]

IN TWO MORE YEARS WE CAN DUMP SOME MORE REPUBLICANS HOW NICE THAT WILL BE.

[irmcvet971]

You are suggesting that all the do-nothing deadbeats on the government payroll deserve jobs for life just because they may not be able to earn a salary elsewhere? My suggestion of a 20% cut in government payrolls was being generous. It should be more like 30 - 40% reductions in staff. None of these deadbeats would be missed!

Posted by ConDumbistan at 12:04 PM : Dec 24, 2008

Look Sparky I don''t know where you get off calling people you don''t even know or know NOTHING about deadbeats but BLAMING them is NOT going to help!! NOT ONE BIT! The point he made and it''s a very valid one, you DO NOT turn around UNEMPLOYMENT and the ECONOMY by putting MORE people into the UNEMPLOYMENT batch!! Our PROBLEM is we do NOT have the engine, the CONSUMER, buying anymore!!

[debinok1]

Oh come on! Haven''''t we tried this garbage long enough? Time to understand ONE thing here. Those people who bought the LIE that good jobs would be created by "Free Trade" were the backbone of this nation. WE fed them to the wolves and now it''''s come home. When WE allowed our Government to put them in competition with FORCED Labor in China, we were cutting our OWN throats!!

Posted by irmcvet971
*****************
Sorry my brain thought faster than my fingers were typing, also included should have been:
closing our borders, no jobs out, no illegals in. and if its sold here its made here.

[Renegade.Rivers]

You Democrats are just so full of yourselves these days, to say the least it is sickening. That is not to say that I am a Bush supporter either, because I am not. It is just when I see the Democrats a dancing, like Obama will come in, waving his magic wand, and things will be better I know it''s a joke.

Obama and the Democrats are planning on spending over 1 trillion dollars on a stimulus package that they believe will be the answer to all the problems.

It''s laughable because by the time inflation catches up to it it will be a 3 trillion dollar boondoggle, and the American taxpayers will be paying for it along with the other trillions that the Democrats have already given the bankers and Wall Street, this time in the 22nd Century, if the country and the world last that long.

Every time I look to Washington all I see is a deeper hole they are digging for us all to sink into. When is this country and the people going to realize that massive debt in government, and the private sector is what got us here? More debt is just going to sink us deeper.

[whitemale08]

Globalization: The idea that a neo-liberal economy of usury and worthless derivative-swaps can be used as an instrument to temporarily bring about prosperity for a shrinking ''middle-class'' by debt.

Once that temporary period of prosperity is over, the Venetian style creditors can loot the bankrupt ''middle-class'' making everyone poor and leave only a handfull of oligarchial families that rule alongside so-called monarchies to reduce the mass population in poverty.

Once that population is less then 2 billion, it will once again become manegeable by pharmaceutical, cloning human/animal hybrids to worship them as Pharoahs and God-Kings.

[debinok1]

Posted by irmcvet971
*****************
That is something I say almost daily, we need to make what we need and quit the "free trade", we need to get back on our feet first, then and only then should we even consider "equal trade", when we are once again self sustaining then we can open trade but only on an equal basis, and nothing can be imported that we can provide for ourselves.

[whitemale08]

LaRouche explained that "We have reached this point, largely due to the insanity of the general populations of the Americas and Europe. How else could we have reached this type of condition? People are still trying to fit their policy options to conform with popular opinion, and, under these conditions of total breakdown, that is really insane. We are at the boundary condition--the end of the system, and one wrong move can trigger a dark age.''''

[debinok1]

Isolationism!

Posted by DaVicar3
****************
Protecting and taking care of OUR OWN first. Protectionism!

[whitemale08]

"It is the point of total breakdown of the entire system. If some significant player in the global financial markets loses his nerve, or if someone goes flight-forward, that alone could trigger the total disintegration. I am talking about the kind of situation--within weeks--where you see a total freeze of economic activity, where you start to see mass deaths on the streets.''''

Lyndon Larouche

[whitemale08]

What Lyndon Larouche is saying is that you might go to the grocery store within the next few weeks and there''s no food on the shelves or your debit card might not work!

[whitemale08]

Bloomberg is reporting right now that the Rothschilds are exposed to the Madoff PONZI scam!

Oh oh, folks, could that be one of the ''significant plaers'' that Lyndon Larouche was talking about?

Remember the Rothschild family is one of the founding fathers of private central banking systems.

If they are exposed to a never ending cascade of law suits and just simply a bankrupt ''monetary system'', it''s easy to see how Lyndon Larouche could be right.

[debinok1]

you might go to the grocery store within the next few weeks and there''''s no food on the shelves or your debit card might not work!

Posted by whitemale08
*********************
DUHHHHHHHHHHH, nobody wants to hear that, no matter how you say it, how many times you say it, the average american has their head in the sand and WONT look to see the wolves attacking. Some of us are very aware of what is happening and are preparing for it.

[jowand]

We, the USA, have a lot of Federaly mandated business cost that foreign manufacturers don''t have. Plus costs that the employee has to pay, such as health insurance. If a US business doesn''t follow these laws they get penalized.

Workers Comp''
OSHA
EPA
Unemployement Insurance
FDIC
Etc....etc

We should pick each nation we trade with and add this cost onto their products, not a difficult thing to do; unless you have a lot of dishonest politicians. If they claim they do have these things like the ChiComs who no doubt will do we should make them prove it.
We don''t have a level playing field, there is no fare trade. Both parties have allowed the American worker to get hosed for years now because of corruption at every level.